Current Expected Credit Losses (CECL) Methodology

The Financial Accounting Standards Board (FASB) issued a new expected credit loss accounting standard in June 2016. The new accounting standard introduces the current expected credit losses methodology (CECL) for estimating allowances for credit losses. The standard is effective for SEC filers in fiscal years and interim periods beginning after December 15, 2019. For public business entities that are not SEC filers, the standard takes effect in fiscal years and interim periods beginning after December 15, 2020. For an entity that is not a public business entity, it takes effect in fiscal years beginning after December 15, 2020.

Until the new standard becomes effective, institutions should follow current U.S. GAAP along with the related supervisory guidance on the allowance for loan and lease losses (ALLL).

For more information, please contact the OCC’s Office of the Chief Accountant by e-mail at CECL@occ.treas.gov.

CECL Webinar Series

In 2017, the OCC began hosting a series of webinars on CECL. The webinars are for OCC-regulated institutions only. Registration for upcoming webinars and recordings of past webinars are posted on BankNet.

Part 7: The Halfway Point – October 18, 2018

Part 6: Purchased Credit Deteriorated Loans – Prerecorded Webcast

Part 5: Third-Party Risk Management & CECL – April 26, 2018

Part 4: Data and Methods – February 15, 2018

Part 3: Debt Securities – August 22, 2017

Part 2: Implementation Considerations – May 23, 2017

Part 1: Introducing CECL – March 23, 2017

Interagency Webinars

CECL Q&A Webinar for Community Bankers – July 30, 2018: Invitation (PDF) – For a transcript of the webinar please refer to the Federal Reserve’s website.